Regional carriers for United Airlines (NASDAQ: UAUA) and Continental Airlines Inc. (NYSE: CAL) announced Wednesday that they will combine in an all cash move valued at $133 million.
SkyWest Inc. (NASDAQ: SKYW) said that its Atlantic Southeast Airlines business has agreed to buy ExpressJet Holdings Inc. (NYSE: XJT) for $6.75 per share, a premium that more than doubles the stock’s closing price on Tuesday of $3.28.
According to the companies, the airlines will be based in Atlanta, the home base of Atlantic Southeast, while continuing to operate in the current hubs of Continental in Houston, Newark and Cleveland, as well as United’s hubs at Chicago O’Hare and Washington Dulles.
"We believe this transaction provides a significant premium over ExpressJet's current market price for its stockholders and that the combined airline will be able to provide a stable, platform for growth for ExpressJet employees after this transaction closes."
The Boards of Directors at both companies have unanimously approved the definitive merger agreement, and is subject to the approval of ExpressJet shareholders. The companies expect the deal to close in the fourth quarter.
In May, Continental and UAL Corp.’s United agreed to merge in a $3 billion deal to create the largest airline in the world.
Shares of ExpressJet have nearly doubled to $6.54 in early market movement Wednesday, while shares of SkyWest are up 15 cents to $12.56.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment